Eagle Materials Up; Aggregates Revenues Rise

Eagle Materials Inc. reported financial results for fiscal year 2014 and the fiscal fourth quarter ended March 31, 2014. Notable items for the fiscal year and quarter in relation to the prior year include:

Fiscal year 2014 revenues of $898.4 million, up 40 percent.

Fiscal year 2014 net earnings per diluted share of $2.49, up 104 percent.

Fourth quarter revenues of $189.9 million, up 19 percent.

Fourth quarter earnings per diluted share of $0.45, up 181 percent

Repaid $108 million, or 22 percent, of outstanding debt during fiscal year 2014.

Fiscal 2014 earnings before interest and income taxes doubled from the prior year to $200 million, reflecting improved sales volumes across all business lines, with cement sales volumes setting an annual record of nearly 4.6 million tons. Net sales prices also strengthened across all businesses, with annual wallboard net sales prices increasing 18 percent over the prior year.

Annual revenue and earnings improvement also reflects the acquisition of assets, primarily two cement plants in Missouri and Oklahoma (the Acquired Assets) on Nov. 30, 2012. Eagle ended the year with a net debt-to-capitalization ratio of 31 percent.

Fourth quarter earnings before interest and income taxes increased 119 percent to $33.8 million, as fourth quarter sales volumes also improved across all businesses, reflecting improving construction fundamentals in the U.S. despite unusually severe winter weather. In addition, sales prices improved in all businesses. Gypsum Wallboard experienced the most significant improvement, with an increase in average net sales prices of 12 percent as compared with the prior year's fourth quarter.

Concrete and Aggregates reported a fiscal 2014 operating loss of $4.7 million versus an operating loss of $5.4 million one year earlier. Our fiscal 2014 results include an operating loss of $4.9 million associated with the start-up of a new frac sand operation.

Revenues from Concrete and Aggregates were $115.4 million for fiscal 2014, 108 percent higher than last year, reflecting the impact from its recently acquired concrete and aggregates business in Kansas City and the start-up of its frac sand operation.